NORTHROP GRUMMAN CORP /DE/

For the period ended Sep 30, 2025. Filed Oct 21, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2025 · Filed Oct 21, 2025

NOC$525.01-0.0%Stored close · as of Nov 6, 2026

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Contents

10. Segment Information

SEGMENT INFORMATION

The following table presents sales, operating costs and expenses, and operating income by segment:

	Three Months Ended September 30		Nine Months Ended September 30
$ in millions	2025	2024	2025	2024
Aeronautics Systems
Sales	$3,142	$2,961	$9,070	$9,065
Operating costs and expenses:
Product	2,108	1,956	6,575	6,043
Service	690	666	1,940	2,007
Intersegment	39	30	112	88
Aeronautics Systems operating income	305	309	443	927
Defense Systems
Sales	2,059	1,800	5,855	5,396
Operating costs and expenses:
Product	1,483	1,269	4,117	3,764
Service	297	333	940	1,011
Intersegment	45	38	132	114
Defense Systems operating income	234	160	666	507
Mission Systems
Sales	3,093	2,823	9,057	8,255
Operating costs and expenses:
Product	1,825	1,747	5,500	5,037
Service	466	451	1,383	1,372
Intersegment	287	235	857	717
Mission Systems operating income	515	390	1,317	1,129
Space Systems
Sales	2,698	2,870	7,912	9,021
Operating costs and expenses:
Product	1,980	2,077	5,702	6,706
Service	297	351	1,021	1,056
Intersegment	123	97	328	280
Space Systems operating income	298	345	861	979
Intersegment profit eliminations	(75)	(58)	(223)	(191)
Total segment operating income	1,277	1,146	3,064	3,351
FAS/CAS operating adjustment	67	20	193	32
Unallocated corporate expense	(102)	(46)	(17)	(102)
Total operating income	1,242	1,120	3,240	3,281
Other (expense) income
Interest expense	(161)	(161)	(490)	(461)
Non-operating FAS pension benefit	136	168	403	503
Other, net	106	61	175	142
Earnings before income taxes	$1,323	$1,188	$3,328	$3,465

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FAS/CAS Operating Adjustment

For financial statement purposes, we account for our employee pension plans in accordance with FAS. However, the cost of these plans is charged to our contracts in accordance with applicable Federal Acquisition Regulation (FAR) and CAS requirements. The FAS/CAS operating adjustment reflects the difference between CAS pension expense included as cost in segment operating income and the service cost component of FAS expense included in total operating income.

Unallocated Corporate Expense

Unallocated corporate expense includes the portion of corporate costs not considered allowable or allocable under applicable FAR and CAS requirements, and therefore not allocated to the segments, such as changes in deferred state income taxes and a portion of management and administration, legal, environmental, compensation, retiree benefits, advertising and other corporate unallowable costs. Unallocated corporate expense also includes costs not considered part of management’s evaluation of segment operating performance, such as amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of property, plant and equipment acquired through business combinations, as well as certain compensation and other costs.

During the second quarter of 2025, the $231 million pre-tax gain on the sale of our training services business and $19 million of unallowable state taxes and transaction costs associated with the divestiture were recorded in Unallocated corporate income (expense).

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Disaggregation of Revenue

Sales by Customer Type · Three Months Ended September 30 · Nine Months Ended September 30
2025 · 2024 · 2025 · 2024
$ in millions	$%(3)	$%(3)	$%(3)	$%(3)
Aeronautics Systems
U.S. government(1)	$2,530	82%	$2,451	84%	$7,346	82%	$7,641	85%
International(2)	564	18%	470	16%	1,586	18%	1,309	15%
Other customers	6	—%	7	—%	17	—%	16	—%
Intersegment sales	42		33		121		99
Aeronautics Systems sales	3,142		2,961		9,070		9,065
Defense Systems
U.S. government(1)	1,570	78%	1,472	84%	4,632	81%	4,435	84%
International(2)	419	21%	271	15%	1,013	18%	777	15%
Other customers	19	1%	14	1%	61	1%	54	1%
Intersegment sales	51		43		149		130
Defense Systems sales	2,059		1,800		5,855		5,396
Mission Systems
U.S. government(1)	2,166	79%	2,093	82%	6,421	80%	6,033	81%
International(2)	557	20%	427	17%	1,537	19%	1,308	18%
Other customers	31	1%	28	1%	84	1%	65	1%
Intersegment sales	339		275		1,015		849
Mission Systems sales	3,093		2,823		9,057		8,255
Space Systems
U.S. government(1)	2,366	93%	2,606	94%	7,024	93%	8,245	95%
International(2)	63	2%	50	2%	154	2%	171	2%
Other customers	132	5%	107	4%	367	5%	293	3%
Intersegment sales	137		107		367		312
Space Systems sales	2,698		2,870		7,912		9,021
Total
U.S. government(1)	8,632	83%	8,622	86%	25,423	84%	26,354	87%
International(2)	1,603	15%	1,218	12%	4,290	14%	3,565	12%
Other customers	188	2%	156	2%	529	2%	428	1%
Total Sales	$10,423		$9,996		$30,242		$30,347

(1)Sales to the U.S. government include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is the U.S. government. Each of the company’s segments derives a substantial percentage of its revenue from the U.S. government.

(2) International sales include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is an international customer. These sales include foreign military sales contracted through the U.S. government.

(3) Percentages calculated based on external customer sales.

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Sales by Contract Type · Three Months Ended September 30 · Nine Months Ended September 30
2025 · 2024 · 2025 · 2024
$ in millions	$%(1)	$%(1)	$%(1)	$%(1)
Aeronautics Systems
Cost-type	$1,454	47%	$1,321	45%	$4,254	48%	$4,080	46%
Fixed-price	1,646	53%	1,607	55%	4,695	52%	4,886	54%
Intersegment sales	42		33		121		99
Aeronautics Systems sales	3,142		2,961		9,070		9,065
Defense Systems
Cost-type	1,028	51%	965	55%	3,077	54%	2,843	54%
Fixed-price	980	49%	792	45%	2,629	46%	2,423	46%
Intersegment sales	51		43		149		130
Defense Systems sales	2,059		1,800		5,855		5,396
Mission Systems
Cost-type	1,219	44%	1,216	48%	3,788	47%	3,390	46%
Fixed-price	1,535	56%	1,332	52%	4,254	53%	4,016	54%
Intersegment sales	339		275		1,015		849
Mission Systems sales	3,093		2,823		9,057		8,255
Space Systems
Cost-type	1,351	53%	1,750	63%	4,453	59%	5,429	62%
Fixed-price	1,210	47%	1,013	37%	3,092	41%	3,280	38%
Intersegment sales	137		107		367		312
Space Systems sales	2,698		2,870		7,912		9,021
Total
Cost-type	5,052	48%	5,252	53%	15,572	51%	15,742	52%
Fixed-price	5,371	52%	4,744	47%	14,670	49%	14,605	48%
Total Sales	$10,423		$9,996		$30,242		$30,347

(1)Percentages calculated based on external customer sales.

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Sales by Geographic Region · Three Months Ended September 30 · Nine Months Ended September 30
2025 · 2024 · 2025 · 2024
$ in millions	$%(3)	$%(3)	$%(3)	$%(3)
Aeronautics Systems
United States(1)	$2,536	82%	$2,458	84%	$7,363	82%	$7,657	85%
Asia/Pacific	221	7%	200	7%	647	7%	534	6%
Europe	321	10%	259	9%	891	10%	749	9%
Other geographic regions(2)	22	1%	11	—%	48	1%	26	—%
Intersegment sales	42		33		121		99
Aeronautics Systems sales	3,142		2,961		9,070		9,065
Defense Systems
United States(1)	1,589	79%	1,486	85%	4,693	82%	4,489	85%
Asia/Pacific	111	6%	74	4%	271	5%	204	4%
Europe	251	12%	144	8%	589	10%	440	8%
Other geographic regions(2)	57	3%	53	3%	153	3%	133	3%
Intersegment sales	51		43		149		130
Defense Systems sales	2,059		1,800		5,855		5,396
Mission Systems
United States(1)	2,197	80%	2,121	83%	6,505	81%	6,098	82%
Asia/Pacific	147	5%	98	4%	407	5%	346	5%
Europe	318	12%	246	10%	820	10%	727	10%
Other geographic regions(2)	92	3%	83	3%	310	4%	235	3%
Intersegment sales	339		275		1,015		849
Mission Systems sales	3,093		2,823		9,057		8,255
Space Systems
United States(1)	2,498	98%	2,713	98%	7,391	98%	8,538	98%
Asia/Pacific	25	1%	6	—%	48	1%	30	1%
Europe	28	1%	36	1%	74	1%	112	1%
Other geographic regions(2)	10	—%	8	1%	32	—%	29	—%
Intersegment sales	137		107		367		312
Space Systems sales	2,698		2,870		7,912		9,021
Total
United States(1)	8,820	85%	8,778	88%	25,952	86%	26,782	88%
Asia/Pacific	504	5%	378	4%	1,373	4%	1,114	4%
Europe	918	8%	685	7%	2,374	8%	2,028	7%
Other geographic regions(2)	181	2%	155	1%	543	2%	423	1%
Total Sales	$10,423		$9,996		$30,242		$30,347

(1)No country other than the United States represents greater than 10% of total company sales.

(2)Other geographic regions are principally comprised of the Middle East.

(3)Percentages calculated based on external customer sales.

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Capital Expenditures and Depreciation and Amortization

The following table presents capital expenditures and depreciation and amortization for each of our reportable segments and for Corporate:

	Three Months Ended September 30		Nine Months Ended September 30
$ in millions	2025	2024	2025	2024
Capital Expenditures
Aeronautics Systems	$102	$139	$250	$339
Defense Systems	21	24	44	46
Mission Systems	66	62	152	143
Space Systems	70	128	251	401
Corporate (1)	42	8	91	22
Total capital expenditures	$301	$361	$788	$951
Depreciation and Amortization
Aeronautics Systems	$92	$92	$273	$266
Defense Systems	47	44	132	129
Mission Systems	71	64	206	188
Space Systems	98	86	261	246
Corporate (1)	71	45	194	127
Total depreciation and amortization	$379	$331	$1,066	$956

(1)Corporate amounts include the amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of PP&E acquired through business combinations as they are not considered part of management’s evaluation of segment operating performance.

Assets

Our chief operating decision maker (“CODM”) does not use assets by segment to evaluate segment performance or allocate resources. Therefore, we do not disclose assets by segment.

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ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.